What is in your FICO score?

Once you know what is in your FICO score, you can take steps to improve your credit rating. Learn how here ...



The first step in improving your FICO score is to understand where your financial information fits into the calculation of this primary rating system.

There are five primary calculations used in determining what your score will be; each is weighted, not all are handled equally, so putting emphasis on fixing the heavily weighted items will help improve your score faster than if you concentrated on the lesser weighted calculations.

The five primary areas of interest are:

1. Paying your debt obligations in a timely manner ... 35%;

2. Your Credit to Debt Ratio ... 30%;

3. Frequency of applications for new credit ... 15%;

4. What types of debt you are carrying, i.e. installment, bank credit, credit cards, etc.... 10%; and

5. Your credit relationships ... how long (how old) the accounts are ... 10%.
This pie chart shows a visual representation of these five areas of interest:

FICO pie chart on the 5 areas used in calculating your FICO score.


Legend For FICO Chart

Legend for FICO chart Based on the chart above, it is quite obvious that paying your debts on time, all the time, will have the largest impact on your credit rating. After that, making sure your Credit to Debt Ratio is inline with recommended financial guidelines will do the most good in keeping or improving your ratings with the 3 major credit bureaus.

Your application activity is how often you apply for new credit. Doesn't matter if it is for a credit card, car loan or mortgage ... each time you apply, the lender may request your credit report from one of the major credit bureaus. If they do, this request is counted as an application activity and can count against you if you do it too often.

The types of debt you have, and their relationship to each other, will also be calculated in determining your credit rating. Secured debt vs. unsecured debt, and how much of each, does count!

Credit relationship is based on your history ... basically it is how old your accounts are ... accounts that are 2 years old or older go a long way in showing responsible debt management if they are in good standing. Don't close old accounts when you pay them off ... just retire them ;)

How Often You Need To Review Your Credit File

Twice a year is usually fine to view your credit reports but you should view them more often while you are working on your getting out of debt program. I recommend you apply for credit monitoring ; then you will get unlimited reports as well as updates that creditors might submit. Monthly reports could cost you in excess of $130 a year, but with credit monitoring , you get it all for less. Definitely the way to go!




Return to the top of What Is In Your FICO Score?

Return to Your Online Credit Report.




Getting The Answers You Need

Need help to get your expenses under control fast? Check this out.

Be sure and check out the various debt solution reviews, tips, and articles provided on DebtSteps.com:

Find Your Solution offers a comprehensive list of reviews to get out of debt once and for all. Get answers on bankruptcy, consumer credit counseling, debt settlement, money management, budgeting, loans and mortgages.

Debt Relief Tips & Articles to guide you on your way to financial freedom. Get the lowdown on dealing with debt collectors, handling money problems, understanding your credit, and more.




Credit Tips

Your Credit Score & Making Debt Relief Choices. Between your score, and your credit report, your financial health depends on obtaining, and maintaining, a good credit rating.

Getting free credit reports to protect your credit. Know your credit, get your free credit report without a credit card every year with new credit card laws.

Online Credit Reports. Where To Get Them ... Free Reports By Mail.

Contacting The Major Credit Bureaus. If you have questions about your credit report, here is how to contact the credit bureaus.

How To Get A Free Credit Report. It used to be that the major credit bureaus would allow you one free credit report without hassle, times have changed!

Evaluating Your Credit Reports For Debt Management helps you understand, how to read and evaluate your reports.

Your credit history is your financial life! Protect your credit history to enjoy a rewarding financial life.

Credit repair can be done, but be sure you do it right. Finding a loan or credit card with bad credit isn't hard, getting a decent interest rate can be. Find out what you need to do to repair your credit so you can qualify for loans and credit cards.

Repairing your credit is a multi-step process. Here are the step-by-step keys to fixing your credit score and reports, yourself.

Can You Quickly Fix Bad Credit? If you can quickly fix bad credit scores, should you and how do you do it?

What is in your FICO score? Find out what is there and what will improve your ratings the fastest.

Contact the three major credit bureaus ... addresses and phone numbers are here.

Define Identity Theft ... are you a potential victim?

Ways to prevent Identity Theft ... are you safe?

Documenting your Identity Theft case ... steps to reporting fraud.

Using Your Online Credit Report In Debt Management Debt Relief will affect your reports and credit scores. No matter which debt relief option you choose, it is likely to have either a temporary, or long-term, negative effect on your credit.

Credit to Debt Ratio - how it affects your credit and your credit line.








What is in your FICO Score?.